The DarT Difference Dart Bank by alicejenny

VIEWS: 3 PAGES: 52

									                                        The DarT Difference




The DarT Bank 83rD annual reporT 2007
                                                                                               Contents
letter to Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2



customer profiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4



2007 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7



five-Year Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8



independent auditors’ report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10



consolidated financial Statements, 2007 and 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11



continuing education 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42



Dart Bankers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44



Donations 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46



Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47



in Memory of Bill Dunlap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48



Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . inside Back cover




                                                                                             The Dart Difference                                                                                                                          1
    letter to Shareholders



                               february 7, 2008



                               Dear friends—Shareholders of Dart Bank:

                               The net profit for 2007 was $1,321,321 producing an earnings per Share
                               of $2.20 and a return on average equity of 5.8%. earnings per Share for
                               the year of 2006 was $3.29 and return on average equity was 8.8%. The
                               two years, 2006 and 2007, were similar from an operational earnings
                               standpoint. The net profits differed, however, in that $477,000 of pre-tax
                               income last year was due to a recovery on a large loan loss that occurred
                               several years ago. in the year just completed nearly $600,000 was
                               expensed for our protection against loan losses.

                               Total dividends of $1,200,000 were paid during 2007, an increase of $90,000
           Peter Kubacki
                               over and above that paid in 2006. our capital ratio at the end of 2007
                               was 9.64% compared to 9.97% the previous year-end. Dart Bank remains a
                               well-capitalized bank.

                               We are not happy with our showing for the year just ended. Michigan’s
                               stagnant economy and an unfortunate interest rate environment created
                               a challenging year to say the least. Growth in total assets of 5.2%
                               approximated our growth for the year 2006. loan dollars outstanding were
                               increased by 15.9%. The increase, due to the hard work of your people,
                               may very well constitute a record increase for any one year of our
                               operation. our lenders have done an excellent job of expanding
                               relationships with existing clients and bringing new clients to the bank.

                               The news has been filled with stories recently about lenders who have
                               created problems with the over-extension of mortgages that are
                               considered sub-prime. The increase in foreclosures and loan losses caused
          Richard Cheney       by these sub-prime lenders has depressed prices and the demand for
                               residential housing, and that has had a definite impact in our market-
                               place. The Dart Bank has a very traditional approach to lending and
                               banking in general. We lend to local people we know using time-tested
                               standards. We only invest in securities of the highest quality. We are seeing
                               an increase in delinquencies and in the level of our non-performing loans.
                               We will act responsibly and work with these borrowers on an individual
                               basis to work things out as well as we can for our customers.

                               The year of 2007 just completed has been one of significant change in
                               management leadership and in your Board of Directors. Joan Bauer,
                               Jack Davis and rollin Dart ceased as active members of the board.
                               further, ron rhoades, who had acted as chief executive officer,
                               chairman and Director, retired altogether. These were significant
                               milestones for Dart Bank. We wish them all well and thank them for the
                               many years of wise counsel and effort in guiding your bank. our new chief
            Rollin Dart        executive officer and president, peter kubacki, assumed the reins on



2                            The Dart Bank 83rd annual report 2007
March 1, 2007. in addition you elected Mark henne, Blake Mulder and
John Grettenberger to our Board of Directors. These gentlemen, with those
directors who are continuing, will, hopefully, guide our bank for many years
to come. Though not having official directorship duties, rollin remains
active in the role of chairman emeritus, attends board meetings,
participates and acts in an advisory capacity. also, you can most always
find him in one of our banks or another.

in this year’s annual report we feature clients of Dart Bank from each of the
three communities we serve. each will describe what makes us different,
and we label this the “Dart Difference.” hopefully, in the stories they tell,
you will see the traits and values that make us different from other banks.

our shares traded nineteen times during 2007. prices ranged between
$45.00 and $70.00. The average price per share was $50.82. This average
price per share reflected a reduction of 18.3% from last year. While the
drop in average sale price is disappointing, the value of bank stocks
in general, and Michigan bank stocks in particular, has fallen more
dramatically. The ten largest publicly traded banks in Michigan showed
a decline of 47% in the value of their stock during 2007. as you know, we
maintain a list of potential purchasers of our stock and this is always
provided to anyone that wishes to sell their shares.

prior to receiving this Annual Report you will have received materials
relating to the intended formation of a one-bank holding company to be
called Dart financial corporation. We feel confident you will seriously
consider making this important, proposed change in our structure.

our annual Meeting will begin at 6:30 p.m. on March 25, 2008, at the
Delhi–South lansing bank. as is our tradition, delicious food will follow
the meeting. This is an excellent opportunity for all of us, shareholders,
managers, and directors, to get to know each other.

Warmest wishes to all.

Sincerely,




peter kubacki                richard cheney                   rollin Dart, c.e.
president and ceo            chairman of the Board            community relations
                                                              officer




                                                 The Dart Difference                3
    customer profile: Scott and Jamie robinson




                                  The Difference:
                                  Local People, Local Decisions
                                  When we dreamed of opening a bookstore in beautiful downtown Mason
                                  ten years ago, we brought our business idea to Mark howe at Dart Bank.

                                  even though the courthouse Square was full of empty storefronts, Mark
                                  and others at Dart Bank could see that a couple of local people might
                                  make a go of a new business. The Dart Difference also helped us add a
                                  café to a completely renovated building that we moved our bookstore to
                                  after just four years in business.

                                  Dart Bank is our independent community bank of choice for our business
    Name: Jamie and Scott         ventures. We have experienced excitement and support for expanding
    robinson                      Bestsellers Books & coffee and soon The Vault—an independent deli,
    Location: Mason               gourmet food and wine store—which is located in the building Dart Bank
                                  occupied for nearly 40 years.

                                  We believe the future of all independent businesses is supporting a Shop
                                  local mentality that will keep the distinct character of the town you live in.
                                  We don’t want our home town to become the next cookie-cutter version
                                  of big box stores, franchises and chain stores. We appreciate that Dart
                                  Bank has vision for specialty retailers.

                                  Dart Bank is different than the jumbo credit unions and non–locally owned
    “We appreciate that           banks. They are involved in the community and give resources and time to
                                  many local organizations. We have worked together at many service and
    Dart Bank has vision          fund-raising events with Dart Bank staff.
    for specialty retailers.”     The Dart Difference—an independent bank that can make decisions
                                  based on the character of individuals as well as the financial situations.
                                  The treasure at Dart Bank is more than what you may find in their vault;
                                  it is truly the people and community-based ideals they embrace.

                                  Scott and Jamie robinson




4                               The Dart Bank 83rd annual report 2007
                                                        customer profile: Steve hanks




                        The Difference: Long-Term Relationships
                        i was scared to death and without a job. i knew i wanted to start my own
                        business. it was 1980, and i went to several banks in the area looking for a
                        $10,000.00 loan to start a dealership.

                        after visiting several banks in the area, i felt like i had a disease. nobody
                        wanted to help by granting me a loan.

                        i then came to Dart Bank. Someone had told me of ron rhoades, and
                        being a smaller bank that they would listen to me.

                        i then found myself sitting in front of ron rhoades, the loan officer at that
                        time. he listened to my plan, he was interested, and Dart Bank granted
                        me my first loan. They were different; they believed in me and gave me
                        a chance.
Name: Steve hanks
                        i not only found my bank but found great friendships that have continued
Location: holt
                        to grow for over 29 years. it is amazing. i will never forget the day rollin
                        came around the corner from his office and offered me an opportunity to
                        buy my first bank stock. i had wanted stock for some time and also knew it
                        was not easy to obtain, but was a great investment that i have entrusted
                        the bank with as much as they have trusted my business and me.

                        i believe in Dart Bank and what they did and do for me. i have felt good
“They were different;   about sending business to the bank and knowing they would be taken
                        care of as i have been.
they believed in me
                        i have never quit appreciating what i have.
and gave me             Steve hanks
                        owner, holt auto Sales
a chance.”




                                The Dart Difference                                                     5
    customer profile: Bill Tanasse




                              The Difference:
                              Customers are Our #1 Priority
                              Sometimes being a small locally owned business makes it challenging
                              to receive quality service from your bank. unlike other banks, Dart Bank
                              makes sure to take care of their customers and work hard to build and
                              maintain solid relationships, with speed and efficiency. They make
                              sure all of your banking needs are taken care of, from the smallest auto
                              loan and deposit account to large commercial real estate and
                              development financing. as far as Dart is concerned, no loan is too small
                              for a valued customer.

                              one day i called my loan officer, Terrance, to see if Dart was at all
                              interested in financing vehicles, since other institutions are usually only
                              interested in financing the types of loans they are currently seeking, with
    Name: Bill Tanasse        no regard for your relationship and what you as a customer really need.
    Location: Grand ledge     it is difficult in this age of the mega-banks to get service tailored to your
                              needs. at Dart you’re definitely treated like your business really matters.

                              By the end of the day, Terrance had driven the loan documents to the
                              auto dealership and i drove off the lot that day with key Builders’ newest
                              truck. This was a small insignificant loan to some other banks, but not to
                              Dart. anything that you do as a business is significant to them. They truly
                              are there to help ensure the sustainability of key Builders and other
    “At Dart you’re           businesses in the community, during good times and bad. That’s the
                              Dart Difference!
    definitely treated
                              Bill Tanasse, president
    like your business        key Builders inc.

    really matters.”




6                           The Dart Bank 83rd annual report 2007
                                                                                                                                              2007 Management Team



Terrance augustine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loan Officer

Trina austin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistant Manager/Holt

Debra Borst . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounting Officer

colleen Briggs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indirect Loan Manager

Michelle carpenter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Office Manager/Mason

Melanie Dart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personal Banker III

rollin Dart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chairman Emeritus/Community Relations Officer

Mark emmert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vice President

craig Goble. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vice President

roy halfmann . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information Technology Officer

cindy hamilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Audit and Compliance Officer

kimberly harless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Office Manager/Holt

Mark howe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vice President

David kosbar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loan Officer

peter kubacki. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . President and CEO

Devin lavengood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Office Manager/Grand Ledge

nanette listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deposit Operations Officer

Debra Miles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vice President

John Morris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loan Officer

Tara owens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistant Manager/Mason

Sally rae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vice President

karla Spoor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistant Vice President

Sharon Thompson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistant Vice President

Mary Tressel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loan Operations Officer

Jacob Walters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Credit Analyst

amy Wheeler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistant Manager/Grand Ledge



                                                                                       The Dart Difference                                                                                                                 7
        five-Year comparative Balance Sheets



                                                                                     As of December 31,

    Assets                                               2007               2006                2005              2004              2003

    cash and due from banks                         $    4,284,852     $     6,298,695    $     6,126,503   $     6,317,780   $     6,025,927

    federal funds sold                                     867,385           6,236,975          5,989,026        6,437,000                  –

    cash and cash equivalents                             5,152,237         12,535,670         12,115,529       12,754,780          6,025,927


    interest-bearing deposits                             4,254,749          4,759,890          3,672,119          994,485           696,390

    investment securities                                47,007,182        54,525,455          57,055,257       54,585,664         63,789,134

    federal home loan Bank stock                           765,900            765,900            770,700           754,800            721,600

    net loans                                           171,604,594        148,078,954        135,489,709       137,783,300       141,746,965

    premises and equipment, net                          4,798,834           4,742,780          4,887,563         3,901,995         2,579,746

    accrued interest receivable                           1,214,897          1,133,872          1,028,221          997,758           1,121,218

    foreclosed and repossessed assets                      345,226            502,800            830,954           706,506            701,972

    other assets                                         4,690,462            980,858           1,321,354         1,203,794         1,558,078

                                                    $ 239,834,462      $ 228,026,179      $ 217,171,406     $ 213,683,082     $ 218,941,030


    Liabilities and Shareholders’ Equity

    Deposits

       interest-bearing                             $   175,157,715    $ 173,904,503      $ 162,867,332     $ 160,226,486     $ 166,190,304

       noninterest-bearing                               29,023,918         28,817,781         28,810,011        27,754,176        28,905,282

                                                        204,181,633        202,722,284        191,677,343       187,980,662       195,095,586


    fhlB advances                                        11,100,000          1,100,000         2,100,000         2,100,000           100,000

    accrued interest payable                               723,497             713,313            567,274          503,583            591,395

    Deferred compensation                                  384,819            406,691             411,651          415,338            418,800

    other liabilities                                      333,209            344,769            427,609           540,315            932,120

                                                        216,723,158        205,287,057        195,183,877       191,539,898        197,137,901


    Shareholders’ equity

       common stock                                      3,000,000          3,000,000          3,000,000         3,000,000         3,000,000

       Surplus                                          11,000,000           7,000,000         7,000,000         7,000,000          7,000,000

       retained earnings                                  9,138,577         13,017,256         12,154,972        11,486,226        10,725,391

       accumulated other comprehensive
        (loss) income                                       (27,273)          (278,134)         (167,443)          656,958          1,077,738

                                                         23,111,304         22,739,122         21,987,529        22,143,184        21,803,129

    Total liabilities and shareholders’ equity      $ 239,834,462      $ 228,026,179      $ 217,171,406     $ 213,683,082     $ 218,941,030



8                                                The Dart Bank 83rd annual report 2007
                                                    five-Year comparative Statements of income



                                                                       Years Ended December 31,

interest and dividend income                     2007              2006              2005             2004             2003

   loans, including fees                     $   11,539,619    $   10,219,867   $    9,267,563   $   9,053,299    $    9,486,512

   investment securities                          2,514,460        2,596,323         2,549,557       2,622,073         3,127,429

   federal funds sold and other                    476,864           336,080          343,085          108,901           85,552

                                                 14,530,943        13,152,270       12,160,205       11,784,273       12,699,493

interest expense

   Deposits                                      6,834,067         5,669,805         4,631,101        3,960,196        5,133,000

   fhlB advances and other                         299,696            62,373           60,744           62,347            3,258

                                                  7,133,763         5,732,178        4,691,845       4,022,543         5,136,258


Net interest income                               7,397,180        7,420,092        7,468,360         7,761,730        7,563,235

provision for (reduction of provision for)
   loan losses                                     595,710         (476,685)          123,280          647,749          867,689

Net interest income after provision
  for loan losses                                 6,801,470         7,896,777       7,345,080         7,113,981       6,695,546

noninterest income                                1,384,515         1,183,474        1,124,095         901,649         1,193,224

noninterest expense

   compensation and benefits                     3,592,009         3,529,286        3,342,030        3,074,338         2,928,382

   occupancy and equipment                         934,693         1,031,648          879,799           767,716         652,405

   office supplies                                 207,043           147,021          183,500          149,750          188,000

   charitable contributions                         85,698            94,095          100,432          110,600          149,069

   other                                          1,689,221         1,666,917        1,657,668       1,282,391         1,178,274

                                                 6,508,664         6,468,967         6,163,429       5,384,795         5,096,130

Income before federal income taxes                1,677,321         2,611,284       2,305,746        2,630,835        2,792,640

federal income taxes                               356,000           639,000          557,000          670,000          692,000

Net income                                   $    1,321,321    $   1,972,284    $    1,748,746   $   1,960,835    $   2,100,640




                                                        The Dart Difference                                                        9
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10                                      The Dart Bank 83rd annual report 2007
                                             THE DART BANK
                                                         consolidated Balance Sheets
                                   CONSOLIDATED BALANCE SHEETS


                                                                                    December 31,
                                   ASSETS                                    2007                  2006

Cash and due from banks                                                 $     4,284,852    $        6,298,695
Federal funds sold                                                              867,385             6,236,975

Cash and cash equivalents                                                     5,152,237            12,535,670

Interest-bearing deposits                                                     4,254,749          4,759,890
Investment securities                                                        47,007,182         54,525,455
Federal Home Loan Bank stock, at cost                                           765,900            765,900
Net loans                                                                   171,604,594        148,078,954
Premises and equipment, net                                                   4,798,834          4,742,780
Accrued interest receivable                                                   1,214,897          1,133,872
Foreclosed and repossessed assets                                               345,226            502,800
Other assets                                                                  4,690,843            980,858

Total assets                                                            $   239,834,462    $   228,026,179

             LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
  Interest bearing                                                      $   175,157,715    $   173,904,503
  Noninterest bearing                                                        29,023,918         28,817,781

Total deposits                                                              204,181,633        202,722,284

FHLB advances                                                                11,100,000             1,100,000
Accrued interest payable                                                        723,497               713,313
Deferred compensation                                                           384,819               406,691
Other liabilities                                                               333,209               344,769

Total liabilities                                                           216,723,158        205,287,057

Commitments and contingencies (Notes 14, 15, 16 and 17)

Shareholders' equity
  Common stock, $5 par value; 600,000 shares
     authorized, issued and outstanding                                       3,000,000             3,000,000
  Additional paid-in capital                                                 11,000,000             7,000,000
  Retained earnings                                                           9,138,577            13,017,256
  Accumulated other comprehensive loss                                          (27,273)             (278,134)

Total shareholders' equity                                                   23,111,304            22,739,122

Total liabilities and shareholders' equity                              $   239,834,462    $   228,026,179


The accompanying notes are an integral part of these consolidated financial statements.




                                               The Dart Difference                                               11
                                                     THE DART BANK
     consolidated Statements of income
                                     CONSOLIDATED STATEMENTS OF INCOME


                                                                                        Year Ended December 31,
                                                                                          2007          2006
     Interest income
        Loans, including fees                                                       $ 11,539,619      $ 10,219,867
        Investment securities                                                          2,514,460         2,596,323
        Federal funds sold and other                                                     476,864           336,080

     Total interest income                                                              14,530,943        13,152,270

     Interest expense
        Interest expense on deposits                                                     6,834,067         5,669,805
        Interest expense on FHLB advances and other                                        299,696            62,373

     Total interest expense                                                              7,133,763         5,732,178

     Net interest income                                                                 7,397,180         7,420,092

     Provision for (reduction of provision for) loan losses                                595,710          (476,685)

     Net interest income after provision for loan
       losses                                                                            6,801,470         7,896,777

     Noninterest income                                                                  1,384,515         1,183,474

     Noninterest expenses
       Compensation and benefits                                                         3,592,009         3,529,286
       Occupancy and equipment                                                             934,693         1,031,648
       Office supplies                                                                     207,043           147,021
       Charitable contributions                                                             85,698            94,095
       Other                                                                             1,689,221         1,666,917

     Total noninterest expenses                                                          6,508,664         6,468,967

     Income before federal income taxes                                                  1,677,321         2,611,284

     Federal income taxes                                                                  356,000          639,000

     Net income                                                                     $    1,321,321    $    1,972,284

     Net income per basic share of common stock                                     $          2.20   $         3.29




     The accompanying notes are an integral part of these consolidated financial statements.




12                                          The Dart Bank 83rd annual report 2007
                                        THE DART BANK
                              consolidated Statements of comprehensive income
             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


                                                                            Year Ended December 31,
                                                                              2007          2006

Unrealized holding gains (losses) on available-for-sale
 securities arising during the year                                        $    387,919     $ (101,347)

Reclassification adjustment for realized gains included
  in net income                                                                   (7,841)      (65,357)

Other comprehensive income (loss) before income tax
  (expense) benefit                                                             380,078       (166,704)

Income tax (expense) benefit related to other comprehensive
  income (loss)                                                                (129,217)        56,013

Other comprehensive income (loss)                                               250,861       (110,691)

Net income                                                                     1,321,321     1,972,284


Comprehensive income                                                       $ 1,572,182      $ 1,861,593




The accompanying notes are an integral part of these consolidated financial statements.




                                          The Dart Difference                                             13
                                                   THE DART BANK
      consolidated Statements of changes in Shareholders’ equity
               CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY


                                                                                                 Accumulated
                                                             Additional                             Other           Total
                                            Common            Paid-In             Retained      Comprehensive    Shareholders'
                                             Stock            Capital             Earnings          Loss            Equity

      Balances, January 1, 2006            $ 3,000,000   $     7,000,000      $ 12,154,972      $    (167,443)   $ 21,987,529

        Comprehensive income                         -                    -        1,972,284         (110,691)      1,861,593

        Cash dividends ($1.85 per share)             -                    -       (1,110,000)               -       (1,110,000)


      Balances, December 31, 2006            3,000,000         7,000,000          13,017,256         (278,134)     22,739,122

        Comprehensive income                         -                    -        1,321,321          250,861       1,572,182

        Regulatory capital transfer                  -         4,000,000          (4,000,000)               -                -

        Cash dividends ($2.00 per share)             -                    -       (1,200,000)               -       (1,200,000)


      Balances, December 31, 2007          $ 3,000,000   $ 11,000,000         $    9,138,577    $     (27,273)   $ 23,111,304




     The accompanying notes are an integral part of these consolidated financial statements.




14                                          The Dart Bank 83rd annual report 2007
                                                THE DART BANK
                                                          consolidated Statements of cash flows
                            CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                             Year Ended December 31,
                                                                              2007           2006
Cash flows from operating activities
 Net income                                                              $    1,321,321     $    1,972,284
 Adjustments to reconcile net income to net
   cash provided by operating activities
     Depreciation and amortization                                              416,175            455,518
     Provision for (reduction of provision for) loan losses                     595,710           (476,685)
     Increase in cash surrender value of BOLI                                   (41,400)                 -
     Deferred income taxes (benefit)                                           (156,000)           234,000
     Gain on sales of investments                                                (7,841)           (65,357)
     Gain on sales of loans                                                      (9,263)            (7,031)
     Proceeds from sales of loans                                             1,360,036          1,037,500
     Loss on disposals of property and equipment                                  3,932                  -
     Loss on sale of foreclosed assets                                           45,089             10,178
     Net amortization of premiums on investments                                 79,795            110,874
     Changes in operating assets and liabilities
       which (used) provided cash
         Accrued interest receivable and other assets                          (218,642)           205,913
         Accrued interest payable and other liabilities                         (23,248)            58,239

Net cash provided by operating activities                                     3,365,664          3,535,433

Cash flows from investing activities
 Activity in available-for-sale securities
   Purchases                                                                  (6,492,386)        (8,985,448)
   Sales, maturities, calls, and prepayments                                  13,782,458         10,637,486
 Maturities, calls, and prepayments of held-to-maturity securities               536,325            665,543
 Purchase of bank owned life insurance                                        (3,600,000)                 -
 Net change in interest-bearing deposits                                         505,141         (1,087,771)
 Loan principal originations and collections, net                            (25,715,434)       (13,151,029)
 Purchases and construction of premises and equipment                           (380,346)          (232,784)
 Proceeds from sales of foreclosed assets                                        355,796             98,970
 Proceeds from redemption of FHLB stock                                                -              4,800

Net cash used in investing activities                                        (21,008,446)       (12,050,233)

Cash flows from financing activities
 Acceptances and withdrawals of deposits, net                                 1,459,349         11,044,941
 Proceeds from FHLB advances                                                 13,000,000                  -
 Repayments of FHLB advances                                                 (3,000,000)        (1,000,000)
 Dividends paid                                                              (1,200,000)        (1,110,000)

Net cash provided by financing activities                                    10,259,349          8,934,941

Net (decrease) increase in cash and cash equivalents                          (7,383,433)          420,141

Cash and cash equivalents, beginning of year                                 12,535,670         12,115,529

Cash and cash equivalents, end of year                                   $    5,152,237     $   12,535,670

The accompanying notes are an integral part of these consolidated financial statements.




                                                  The Dart Difference                                          15
                                      THE DART BANK

     notes to consolidated financial Statements
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



      1.    BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

            Business and Concentrations of Risk

            The consolidated financial statements include the accounts of The Dart Bank (the
            “Bank”) and the Bank’s subsidiaries, The Dart Mortgage Company, LLC and TDB
            Services, Inc. The Dart Mortgage Company, LLC is a mortgage banking company which
            is 99% owned by the Bank and 1% owned by TDB Services, Inc. TDB Services, Inc. is
            owned 100% by the Bank and its only business activity is its 1% ownership in The Dart
            Mortgage Company, LLC. All significant intercompany balances and transactions have
            been eliminated in consolidation. The Bank consolidates subsidiaries in which it holds
            directly or indirectly more than 50% of the voting rights or where it exercises control.

            The Bank is an independently-owned community bank engaged in the business of retail
            and commercial banking services through its three full-service offices located in Mason,
            Holt, and Grand Ledge. Active competition, principally from other commercial banks,
            savings banks, and credit unions, exists in all of the Bank’s primary markets. The
            Bank’s results of operations can be significantly affected by changes in interest rates or
            changes in the automotive and agricultural industries which comprise a significant
            portion of the local economic environment.

            The Bank’s primary deposit products are interest and noninterest bearing checking
            accounts, savings accounts, and time deposits, and its primary lending products are real
            estate mortgages and commercial and consumer loans. Note 3 further describes the types
            of lending in which the Bank engages and Note 7 provides additional information on
            deposits. Note 2 discusses the types of securities in which the Bank invests. The Bank
            does not have any significant concentrations to any one industry, customer, or depositor.

            The Bank is a state chartered bank and is a member of the Federal Deposit Insurance
            Corporation (“FDIC”) Bank Insurance Fund. The Bank is subject to the regulations and
            supervision of the FDIC and state regulators and undergoes periodic examinations by
            these regulatory authorities.

            Summary of Significant Accounting Policies

            Accounting policies used in preparation of the accompanying consolidated financial
            statements conform to predominant banking industry practices and are based on
            generally accepted accounting principles. The principles which materially affect the
            determination of the financial position or results of operations of the Bank and its
            subsidiaries are summarized below.




16                                The Dart Bank 83rd annual report 2007
                            THE DART BANK

                                   notes to consolidated financial Statements
      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles
generally accepted in the United States of America, management is required to make
estimates and assumptions that affect the reported amounts of assets and liabilities as of
the date of the consolidated balance sheet and the reported amounts of revenues and
expenses during the reporting year. Actual results could differ from those estimates. The
material estimate that is particularly susceptible to significant change in the near term
relates to the determination of the allowance for loan losses.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, amounts due from banks, and federal
funds sold. Generally, federal funds are sold for a one-day period. The Bank maintains
deposit accounts in various financial institutions which generally exceed the FDIC
insured limits or are not insured.

Interest-Bearing Deposits

Interest-bearing deposits in banks represent certificates of deposit that mature within 5
years and are carried at cost.

Investment Securities

Securities that management has the ability and positive intent to hold to maturity are
classified as “held-to-maturity” and recorded at amortized cost. All other securities are
classified as “available-for-sale” and recorded at fair value, with unrealized gains and
losses, net of the effect of deferred income taxes, excluded from earnings and reported as
a net amount in other comprehensive income.

Purchase premiums and discounts are recognized in interest income using the interest
method over the terms of the securities. Declines in the fair value of held-to-maturity
and available-for-sale securities below their cost that are deemed to be other than
temporary are reflected in earnings as realized losses. In determining whether other-than-
temporary impairment exists, management considers many factors, including 1) the
length of time and extent to which the fair value has been less than cost, 2) the financial
condition and near-term prospects of the issuer, and 3) the intent and ability of the Bank
to retain its investment in the issuer for a period of time sufficient to allow for anticipated
recovery in fair value. Gains or losses on the sale of securities are recorded on the trade
date and are determined using the specific identification method.




                                  The Dart Difference                                             17
                                      THE DART BANK

     notes to consolidated financial Statements
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



           Restricted Investments

           The Bank is a member of the Federal Home Loan Bank System and is required to invest in
           capital stock of the Federal Home Loan Bank of Indianapolis (“FHLB”). The amount of
           the required investment is based upon the balance of the Bank’s outstanding home
           mortgage loans or advances from the Federal Home Loan Bank and is carried at cost plus
           the value assigned to stock dividends.

           Transfers of Financial Assets

           Transfers of financial assets are accounted for as sales when control over the assets has
           been surrendered. Control over transferred assets is determined to be surrendered when 1)
           the assets have been isolated from the Bank, 2) the transferee obtains the right (free of
           conditions that constrain it from taking advantage of that right) to pledge or exchange the
           transferred assets, and 3) the Bank does not maintain effective control over the transferred
           assets through an agreement to repurchase them before their maturity.

           Loans and Related Income

           Loans that management has the intent and ability to hold for the foreseeable future or until
           maturity or pay-off are generally reported at their outstanding unpaid principal balances
           adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on
           originated loans. Interest income is accrued on the unpaid principal balance. Loan
           origination fees, net of certain direct loan origination costs, are deferred and recognized as
           an adjustment of the related loan yield using the interest method.

           The accrual of interest on mortgage and commercial loans is discontinued at the time the
           loan is 90 days past due unless the credit is well-secured and in process of collection.
           Personal loans are typically charged off no later than 120 days past due. Past due status is
           based on contractual terms of the loan. In all cases, loans are placed on non-accrual or
           charged-off at an earlier date if collection of principal and interest is considered doubtful.

           All interest accrued in the current year but not collected for loans that are placed on non-
           accrual or charged-off status is reversed against interest income. The interest on these
           loans is accounted for on the cash-basis or cost-recovery method, until qualifying for
           return to accrual. Loans are returned to accrual status when all principal and interest
           amounts contractually due are brought current and future payments are reasonably
           assured. For impaired loans not classified as nonaccrual, interest income continues to be
           accrued over the term of the loan based on the principal amount outstanding.




18                                The Dart Bank 83rd annual report 2007
                           THE DART BANK

                                  notes to consolidated financial Statements
      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred
through a provision for loan losses charged to earnings. Loan losses are charged against
the allowance when management believes the uncollectibility of the loan balance is
confirmed. Subsequent recoveries, if any, are generally credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based
upon management’s periodic review of the collectibility of the loans in light of historical
experience, the nature and volume of the loan portfolio, adverse situations that may affect
the borrower’s ability to repay, estimated value of any underlying collateral, and
prevailing economic conditions. This evaluation is inherently subjective as it requires
estimates that are susceptible to significant revision as more information becomes
available.

The allowance consists of specific, general, and unallocated components. The specific
component relates to loans that are classified as doubtful, substandard, or special mention.
For such loans that are classified as impaired, an allowance is established when the
discounted cash flows (or collateral value or observable market price) of the impaired
loan is lower than the carrying value of that loan. The general component covers non-
classified loans and is based on historical loss experience adjusted for qualitative factors.
An unallocated component is generally maintained to cover uncertainties that could affect
management’s estimate of probable losses. The unallocated component of the allowance
reflects the margin of imprecision inherent in the underlying assumptions used in the
methodologies for estimating specific and general losses in the portfolio.

A loan is considered impaired when, based on current information and events, it is
probable that the Bank will be unable to collect the scheduled payments of principal or
interest when due according to the contractual terms of the loan agreement. Factors
considered by management in determining impairment include payment status, collateral
value, and the probability of collecting scheduled principal and interest payments when
due. Loans that experience insignificant payment delays and payment shortfalls generally
are not classified as impaired. Management determines the significance of payment delays
and payment shortfalls on a case-by-case basis, taking into consideration all of the
circumstance surrounding the loan and the borrower, including the length of the delay, the
reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall
in relation to the principal and interest owed. Impairment is measured on a loan-by-loan
basis for commercial and construction loans by either the present value of expected future
cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market
price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for
impairment. Accordingly, the Bank does not separately identify individual consumer and
residential loans for impairment disclosures, unless such loans are the subject of a
restructuring agreement.




                                 The Dart Difference                                            19
                                       THE DART BANK

     notes to consolidated financial Statements
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



           Loan Servicing

           Servicing assets are recognized as separate assets when mortgaging servicing rights are
           acquired through purchase or through sale of financial assets. Generally, purchased
           servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage
           loans, a portion of the cost of originating the loan is allocated to the servicing right based
           on relative fair value. Fair value is estimated based generally on market prices for
           comparable mortgage servicing contracts, when available. Servicing assets are evaluated
           for impairment based upon the fair value of the rights as compared to amortized cost.
           Impairment is determined by stratifying rights into tranches based on predominant risk
           characteristics, such as interest rate, loan type, and investor type. Impairment is
           recognized through a valuation allowance for an individual tranche, to the extent that fair
           value is less than the capitalized amount for the tranche. If the Bank later determines that
           all or a portion of the impairment no longer exists for a particular tranche, a reduction of
           the allowance may be recorded as an increase to income. Capitalized servicing rights are
           reported in other assets and are amortized into non-interest income in proportion to, and
           over the period of, the estimated future net servicing income of the underlying financial
           assets.

           Servicing fee income is recorded for fees earned for servicing loans. The fees are based
           on a contractual percentage of the outstanding principal or a fixed amount per loan and
           are recorded as income when earned. The amortization of mortgage servicing rights is
           netted against loan servicing fee income.

           Foreclosed and Repossessed Assets

           Assets acquired through, or in lieu of, loan foreclosure or repossession are held for sale
           and are initially recorded at fair value at the date of transfer, establishing a new cost
           basis. Subsequent to foreclosure or repossession, valuations are periodically performed
           by management and the assets are carried at the lower of the carrying amount or fair
           value less costs to sell. Revenue and expenses from operations and changes in the
           valuation allowance are included in net expenses from foreclosed assets.

           Premises and Equipment

           Land is carried at cost. Buildings and equipment are carried at cost, less accumulated
           depreciation. Depreciation is computed principally by the straight-line method based
           upon the useful lives of the related assets which generally range from 3 to 40 years.
           Maintenance, repairs, and minor alterations are charged to current operations as
           expenditures occur and major improvements are capitalized.




20                                 The Dart Bank 83rd annual report 2007
                          THE DART BANK

                                notes to consolidated financial Statements
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Bank Owned Life Insurance (BOLI)

Effective October 1, 2007, the Bank purchased insurance policies on the lives of certain
key officers. Bank owned life insurance is reported at its cash surrender value, or the
amount that can be realized, as of the date of the consolidated balance sheets, and is
included in other assets on the December 31, 2007 consolidated balance sheet (see
Note 11).

Off-Balance-Sheet Credit-Related Financial Instruments

In the ordinary course of business, the Bank enters into commitments to extend credit,
including commitments under commercial letters of credit and standby letters of credit.
Such financial instruments are recorded only when they are funded.

Income Taxes

Deferred income tax assets and liabilities are determined using the liability (or balance
sheet) method. Under this method, the net deferred tax asset or liability is determined
based on the tax effects of the temporary differences between the book and tax bases of
various assets and liabilities and gives current recognition to changes in tax rates and
laws.

Net Income Per Share

Net income per basic share of common stock represents income available to common
stockholders divided by the weighted-average number of common shares outstanding,
which was 600,000 shares during each year.

Reclassifications

Certain amounts as reported in the 2006 consolidated financial statements have been
reclassified to conform with the 2007 presentation.




                                The Dart Difference                                         21
                                        THE DART BANK

     notes to consolidated financial Statements
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



      2.   INVESTMENT SECURITIES

            The amortized cost and fair value of investment securities, including gross unrealized
            gains and losses, are as follows as of December 31:


                                                              Gross           Gross
                                            Amortized       Unrealized      Unrealized       Fair
                     2007                     Cost            Gains          Losses          Value

            Available-for-Sale
              Government-sponsored
                enterprises                $ 13,861,306      $ 46,026       $ 33,971     $ 13,873,361
              Corporate bonds                   250,133         3,416              -          253,549
              State and municipal            12,294,207       101,864         81,744       12,314,327
              Mortgage-backed
                securities                   17,875,976         62,384        138,303     17,800,057

            Total available-for-sale         44,281,622        213,690        254,018     44,241,294

            Held-to-Maturity
              State and municipal             2,514,050         48,396              -      2,562,446
              Mortgage-backed
                securities                      251,838           7,204          165         258,877

            Total held-to-maturity             2,765,888         55,600           165       2,821,323

            Total                          $ 47,047,510      $ 269,290      $254,183     $ 47,062,617




22                                  The Dart Bank 83rd annual report 2007
                           THE DART BANK

                                notes to consolidated financial Statements
        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



                                                 Gross           Gross
                               Amortized       Unrealized      Unrealized         Fair
          2006                   Cost            Gains          Losses            Value

Available-for-Sale
  Government-sponsored
    enterprises                $ 15,738,103     $ 39,063       $114,374       $ 15,662,792
  Corporate bonds                   250,303        5,588              -            255,891
  State and municipal            13,239,348       86,990         25,276         13,301,062
  Mortgage-backed
    securities                  22,414,727             9,420     421,817        22,002,330

Total available-for-sale        51,642,481        141,061        561,467        51,222,075

Held-to-Maturity
  State and municipal            2,918,137            49,948          404        2,967,681
  Mortgage-backed
    securities                     385,243             8,536           17         393,762

Total held-to-maturity           3,303,380            58,484          421        3,361,443

Total                          $ 54,945,861     $ 199,545      $561,888       $ 54,583,518


Investment securities with carrying values of approximately $17,562,000 and
$22,704,000 at December 31, 2007 and 2006, respectively, were pledged to secure public
deposits or for other purposes as permitted or required by law.

The amortized cost and fair value of held-to-maturity securities and available-for-sale
securities by contractual maturity at December 31, 2007 is as follows:

                                                        Amortized              Fair
                                                          Cost                 Value
  Available-for-Sale
  Due in one year or less                               $ 3,385,899     $ 3,384,391
  Due after one year through five years                   5,609,041       5,618,422
  Due after five years through ten years                 10,422,055      10,496,851
  Due after ten years                                     6,988,651       6,941,573

  Subtotal                                               26,405,646         26,441,237
  Mortgage-backed securities                             17,875,976         17,800,057

  Total                                                 $44,281,622         $44,241,294




                                The Dart Difference                                          23
                                       THE DART BANK

     notes to consolidated financial Statements
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



                                                                     Amortized             Fair
                                                                       Cost                Value
              Held-to-Maturity
              Due in one year or less                                $ 1,027,154      $ 1,031,343
              Due after one year through five years                      712,896          723,132
              Due after five years through ten years                     514,000          534,842
              Due after ten years                                        260,000          273,129
                                                                       2,514,050        2,562,446
              Subtotal
              Mortgage-backed securities                                 251,838             258,877

              Total                                                  $ 2,765,888      $ 2,821,323


           Because of their variable payments, mortgage-backed securities are not reported by a
           specific maturity group. Proceeds from sales of available-for-sale securities amounted to
           $2,191,099 and $3,179,448 in 2007 and 2006, respectively. Gross realized gains
           amounted to $7,841 and $65,357 in 2007 and 2006, respectively. There were no gross
           realized losses during either year.

           Management evaluates securities for other-than-temporary impairment at least on a
           quarterly basis, and more frequently when economic or market concerns warrant such
           evaluation. Consideration is given to (1) the length of time and the extent to which the
           fair value has been less than cost, (2) the financial condition and near-term prospects of
           the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer
           for a period of time sufficient to allow for any anticipated recovery in fair value.

           Information pertaining to securities with unrealized losses aggregated by investment
           category and the length of time that individual securities have been in a continuous loss
           position is summarized as follows at December 31:

                                      Less Than Twelve Months      Over Twelve Months
                                                                                                 Total
                                       Unrealized       Fair     Unrealized      Fair          Unrealized
            2007                        Losses         Value      Losses         Value          Losses

            Securities available-for-sale
              Government-sponsored
                enterprises               $ 2,847 $ 4,035,120     $ 31,124    $ 3,169,201      $    33,971
              State and municipal           38,813  3,124,080       42,931      1,497,397           81,744
              Mortgage-backed
                securities                       -          -       138,303     11,545,145         138,303

            Total securities
              available-for-sale        $ 41,660 $ 7,159,200      $ 212,358   $ 16,211,743     $ 254,018




24                                 The Dart Bank 83rd annual report 2007
                            THE DART BANK

                                  notes to consolidated financial Statements
       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



                           Less Than Twelve Months       Over Twelve Months
                                                                                         Total
                            Unrealized       Fair      Unrealized         Fair         Unrealized
2007                         Losses         Value       Losses            Value         Losses

Securities held-to-maturity
  Mortgage-backed
   securities               $      165 $      35,327    $         -   $           -    $      165


2006

Securities available-for-sale
  Government-sponsored
    enterprises               $ 25,241 $ 3,991,308      $ 89,133      $ 5,936,999      $ 114,374
  State and municipal           12,723   2,218,011        12,553        1,357,300         25,276
  Mortgage-backed
    securities                   7,059   2,536,619          414,758       18,721,136       421,817

Total securities
  available-for-sale         $ 45,023 $ 8,745,938       $ 516,444     $ 26,015,435     $ 561,467


Securities held-to-maturity
  State and municipal       $      139 $      34,861    $      265    $      69,735    $      404
  Mortgage-backed
   securities                       17         8,789              -               -            17

Total securities
  held-to-maturity           $     156 $      43,650    $      265    $     69,735     $      421


At December 3l, 2007, no debt securities had unrealized losses with aggregate
depreciation of 5% or more from the Bank’s amortized cost basis. In analyzing an
issuer’s financial condition, management considers whether the securities are issued by
the federal government or its agencies, whether downgrades by bond rating agencies
have occurred, and industry analysts’ reports. Since management believes the Bank has
the ability to hold debt securities until maturity, or for the foreseeable future if classified
as available-for-sale, no declines are deemed to be other than temporary.




                                 The Dart Difference                                                 25
                                       THE DART BANK

     notes to consolidated financial Statements
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



      3.    LOANS

            The Bank grants commercial, consumer, and residential mortgage loans to customers
            primarily in certain South Central Michigan counties, principally Ingham, Eaton, and
            Clinton. The ability of the Bank’s debtors to honor their contracts is dependent upon the
            real estate and general economic conditions in this area. While substantially all of the
            consumer and residential loans are secured by various forms of collateral including real
            estate and consumer property, with commercial loans secured primarily by business
            assets and personal guarantees, borrower cash flow is the primary source of repayment.
            A small portion of loans are unsecured.

            Major loan classifications are summarized as follows as of December 31:

                                                                        2007             2006
               Mortgage loans on real estate
                 Residential 1-4 family                          $ 65,546,381        $ 60,645,796
                 Commercial                                        68,354,369          56,438,257
                 Construction                                       8,342,577           4,319,112
                 Equity lines of credit                             5,065,963           2,893,506
               Total mortgage loans on real estate                147,309,290         124,296,671

               Commercial                                             18,723,838       18,320,558

               Consumer installment loans                              7,395,532        7,184,352

               Total loans                                           173,428,660      149,801,581
               Less
                 Allowance for loan losses                             1,800,000        1,700,000
                 Net deferred loan origination fees                       24,066           22,627

               Net loans                                         $ 171,604,594       $ 148,078,954


            At December 31, 2007 scheduled maturities of loans with fixed rates of interest are
            summarized as follows:

                           One year or less                      $     8,233,069
                           One to five years                          72,954,427
                           Over five years                            53,691,946

                           Total                                 $ 134,879,442

           Variable rate loans of $38,549,218 reprice annually or more frequently.




26                                 The Dart Bank 83rd annual report 2007
                               THE DART BANK

                                      notes to consolidated financial Statements
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



     The following is a summary of information pertaining to impaired and non-accrual loans
     as of December 31 or for the year then ended:

                                                               2007            2006

        Impaired loans:
         Total impaired loans with a valuation
           allowance                                       $ 1,167,097     $   794,075

          Valuation allowance related to impaired loans    $   274,106     $   257,991

          Average investment in impaired loans             $   528,674     $   766,634

          Interest income recognized on impaired loans     $    84,995     $   313,526

          Interest income recognized on a cash basis
            on impaired loans                              $    87,366     $   285,552

        Nonperforming loans:
         Loans on nonaccrual status                        $ 1,265,576     $   898,019

          Loans past due over 90 days still on accrual     $   495,741     $   327,003


     No additional funds were committed to be advanced in connection with impaired loans.

     Nonperforming loans include both smaller balance homogeneous loans that are
     collectively evaluated for impairment and individually classified impaired loans.


4.   ALLOWANCE FOR LOAN LOSSES

     The following is a summary of the changes in the allowance for loan losses during the
     years ended December 31:
                                                             2007             2006
        Balance, beginning of year                         $ 1,700,000     $ 1,985,000

        Loans charged off                                      (587,124)       (442,212)
        Recoveries                                               91,414         633,897
        Net (charge offs) recoveries                           (495,710)        191,685
        Provision for (reduction of provision for)
          loan losses                                          595,710         (476,685)

        Balance, end of year                               $ 1,800,000     $ 1,700,000




                                     The Dart Difference                                      27
                                      THE DART BANK

     notes to consolidated financial Statements
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



      5.   LOAN SERVICING

           The Bank services loans for others which generally consists of collecting mortgage
           payments, maintaining escrow accounts, disbursing payments to investors and taxing
           authorities, and processing foreclosures. Loans serviced for others are not included in the
           accompanying consolidated balance sheets. The unpaid principal balances of mortgages
           and other loans serviced for others were approximately $15,974,000 and $16,138,000 at
           December 31, 2007 and 2006, respectively.

           The net carrying values of mortgage servicing rights were approximately $86,000 and
           $110,000 at December 31, 2007 and 2006, respectively. The activity pertaining to
           mortgage servicing rights was not significant during 2007 or 2006.


      6.   PREMISES AND EQUIPMENT

           A summary of the cost and accumulated depreciation of premises and equipment is as
           follows at December 31:

                                                                        2007             2006

             Land and improvements                                   $ 1,890,441      $ 1,889,681
             Buildings and improvements                                3,797,035        3,698,711
             Furniture and equipment                                   2,966,181        2,738,127

             Total premises and equipment                             8,653,657         8,326,519
             Less accumulated depreciation                            3,854,823         3,583,739

             Premises and equipment, net                             $ 4,798,834      $ 4,742,780


           Depreciation expense amounted to $320,360 and $328,609 in 2007 and 2006,
           respectively.




28                                The Dart Bank 83rd annual report 2007
                               THE DART BANK
                                     notes to consolidated financial Statements
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



7.   DEPOSITS

     The following is a summary of the distribution of deposits at December 31:

                                                                2007              2006

              Interest bearing
                NOW accounts                               $ 13,738,114    $ 12,447,923
                Savings                                      47,363,399      45,104,214
                Time, $100,000 and over                      50,571,283      55,191,819
                Other time                                   63,484,919      61,160,547

              Total interest bearing                        175,157,715      173,904,503
              Noninterest bearing demand                     29,023,918       28,817,781

              Total deposits                               $204,181,633    $ 202,722,284


     Interest expense on time deposits issued in denominations of $100,000 or more was
     $2,445,081 and $2,115,431 in 2007 and 2006, respectively.

     Scheduled maturities of time deposits for each of the five years succeeding December 31,
     2007 and thereafter are summarized as follows:

              2008                                        $ 85,126,170
              2009                                          16,497,795
              2010                                           3,821,024
              2011                                           3,067,490
              2012                                           5,389,253
              Thereafter                                       154,470

              Total                                       $ 114,056,202


8.   FHLB ADVANCES

     Federal Home Loan Bank advances are collateralized by a blanket lien on all qualified
     1-to-4 family whole mortgage loans and U.S. government agency securities with
     combined carrying values of approximately $16,471,000 and $20,500,000 at
     December 31, 2007 and 2006, respectively. Required principal payments are $1,000,000
     in 2009, $5,000,000 in 2010, $5,000,000 in 2012, and $100,000 in 2021. Interest is
     charged on these advances at fixed annual rates ranging from 3.45% to 4.92%. At
     December 31, 2007, the Bank also had $15,875,000 in borrowing availability under
     short-term lines of credit.




                                    The Dart Difference                                         29
                                        THE DART BANK

     notes to consolidated financial Statements
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



        9.   FEDERAL INCOME TAXES

             The provision for federal income taxes consists of the following components for the
             years ended December 31:
                                                                     2007          2006

               Currently payable                                   $      512,000    $   405,000
               Deferred (benefit) expense                                (156,000)       234,000

               Total provision                                     $     356,000     $   639,000

             A reconciliation of the provision for federal income taxes and the amount computed by
             applying the statutory federal income tax rates to income before federal income taxes is
             as follows for the years ended December 31:
                                                                        2007             2006

               Income taxes at statutory rate                      $      570,000    $    888,000
               Effect of tax-exempt interest income                      (245,000)       (240,000)
               Effect of nondeductible interest expense                    43,000          29,000
               Other reconciling amounts                                  (12,000)        (38,000)

               Income taxes reported                               $     356,000     $   639,000

             The components of the net deferred tax asset included within other assets resulted from
             the following temporary differences between the carrying amounts of assets and
             liabilities for federal income tax and financial reporting purposes as of December 31:

                                                                         2007            2006
               Deferred tax assets:
                Allowance for loan losses                          $     417,881     $   215,340
                Deferred compensation                                    130,838         138,275
                Unrealized loss on available-for-sale securities          13,712         142,938
                Other                                                     89,025          84,734

               Total deferred tax assets                                 651,456         581,287

               Deferred tax liabilities:
                Premises and equipment                                   (259,398)       (192,093)
                Mortgage servicing rights                                 (29,297)        (37,553)
                Prepaid expenses                                          (35,558)        (38,923)
                FHLB stock                                                (25,645)        (37,934)

               Total deferred tax liabilities                            (349,898)       (306,503)

               Net deferred tax asset                              $     301,558     $   274,784




30                               The Dart Bank 83rd annual report 2007
                                THE DART BANK

                                      notes to consolidated financial Statements
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



      In July 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation
      No, 48, Accounting for Uncertainty in Income Taxes (“FIN No. 48”), an interpretation of
      Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes.
      FIN No. 48 seeks to reduce the significant diversity in practice associated with financial
      statement recognition and measurement in accounting for income taxes and prescribes a
      recognition threshold and measurement attribute for disclosure of tax positions taken or
      expected to be taken on an income tax return, in order for those tax provisions to be
      recognized in the Bank’s financial statements. During 2007, the Bank adopted the
      provisions of FIN No. 48. The adoption had no effect on the Bank’s financial statements.

      The Bank and its subsidiaries are subject to U.S. federal income tax. The Bank is no
      longer subject to examination by taxing authorities for years before 2004. The Bank
      does not expect the total amount of unrecognized tax benefits to significantly increase in
      the next twelve months.

      The Bank recognizes interest and/or penalties related to income tax matters in income tax
      expense. The Bank does not have any amounts accrued for interest and penalties at
      December 31, 2007 and is not aware of any claims for such amounts by federal income
      tax authorities.


10.   NONINTEREST INCOME

      Noninterest income consists of the following amounts for the years ended December 31:

                                                                   2007             2006

         Fees and service charges                              $ 1,155,175      $ 971,412
         Gain on loans sold                                          9,263          7,031
         Other                                                     220,077        205,031

         Total noninterest income                              $ 1,384,515      $1,183,474




                                      The Dart Difference                                          31
                                       THE DART BANK

     notes to consolidated financial Statements
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



      11.   EMPLOYEE BENEFIT PLANS

            Profit Sharing

            The Bank sponsors a profit sharing plan covering employees who work 1,000 or more
            hours per year, have one or more years of continuous service, and who are 21 or older.
            Contributions to the plan are based on a percentage of eligible salaries, limited to the
            amount deductible for federal income tax purposes. Contributions to the profit sharing
            plan are determined annually by the Board of Directors. The cost of the plan was
            $119,000 and $177,500 in 2007 and 2006, respectively.

            Deferred Compensation

            The Bank also maintains two executive deferred compensation plans for certain officers
            and directors. The first plan includes participants that elected to defer compensation over
            eight years in exchange for a predetermined benefit after retirement. During 2003, a
            second plan was implemented to fund a defined contribution for selected employees at
            the discretion of the Board of Directors. Plan expenses are allocated over years of service
            or based upon the current amount of the defined contributions. Expense for these plans
            was approximately $24,000 and $23,000 in 2007 and 2006, respectively.

            Bank Owned Life Insurance

            Effective October 1, 2007, the Bank invested $3,600,000 in a single premium, bank-
            owned, endorsement split-dollar, whole life insurance program. Bank owned life
            insurance is an alternative investment vehicle, generally non-liquid, which may produce
            additional earnings to offset, and later fund, various employee supplemental benefit
            expenses. The cash surrender value of these policies, which approximates $3,641,000 at
            December 31, 2007, is included in other assets on the consolidated balance sheets. The
            earnings on the policies are not taxed unless withdrawn or surrendered prior to the death
            of the insured. The increase in cash surrender value of the policies is recognized as
            income in the accompanying consolidated statements of income.

            To date, no compensation expense has been required to be recognized in the Company’s
            financial statements to accrue the mortality and related costs of maintaining the life
            insurance policies in effect during the covered officers’ postretirement periods.

            Emerging Issues Task Force (“EITF”) Issue No. 06-4, Accounting for Deferred
            Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life
            Insurance Arrangements, ratified by the FASB, requires that policyholders recognize a
            liability for any postretirement benefits provided through the Bank’s program. As of
            December 31, 2007, the nature and amount of benefits promised by the Bank to the
            covered officers had not yet been finalized. An accrued liability would begin to be
            recorded effective the later of the date the employee benefits are specified, or January 1,
            2008.




32                                The Dart Bank 83rd annual report 2007
                                THE DART BANK

                                      notes to consolidated financial Statements
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



12.   RELATED PARTY TRANSACTIONS

      Loans

      In the ordinary course of business, the Bank grants loans to certain directors and
      executive officers and their affiliates. Annual activity approximated the following
      amounts during the years ended December 31:

                                                                 2007              2006

          Beginning balance                                    $1,324,000       $1,954,000
          New loans                                             1,682,000           27,000
          Repayments                                           (1,141,000)        (657,000)

          Ending balance                                       $1,865,000       $1,324,000


      Deposits

      Deposits of Bank directors and executive officers and their affiliates were approximately
      $1,743,000 and $2,380,000 at December 31, 2007 and 2006, respectively.

      Leases

      Through mid-2007, the Bank leased operational office space from a Director of the Bank.
      Rent expense was $18,205 and $43,479 in 2007 and 2006, respectively.

      The Bank rents storage space on a month-to-month basis from another Director of the
      Bank for approximately $4,000 annually.


13.   SUPPLEMENTAL CASH FLOWS INFORMATION

      Non-Cash Investing Activities

      During 2007 and 2006 collateral was foreclosed and repossessed related to loans
      receivable of approximately $243,000 and $9,000, respectively, which amounts were then
      transferred to foreclosed and repossessed assets. During 2006, computer software in the
      amount of $48,958 was transferred from premises and equipment to other assets.




                                      The Dart Difference                                         33
                                      THE DART BANK

     notes to consolidated financial Statements
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



            Other Cash Flows Information

            Cash paid for interest and income taxes amounted to the following during the years
            ended December 31:

                                                                        2007             2006

                Interest                                            $ 7,123,579      $ 5,586,139

                Income taxes                                        $    545,800     $    351,730


      14.   OFF-BALANCE SHEET ACTIVITIES

            Credit-Related Financial Instruments

            The Bank is a party to credit related financial instruments with off-balance-sheet risk in
            the normal course of business to meet the financing needs of its customers. These
            financial instruments include commitments to extend credit, standby letters of credit, and
            commercial letters of credit. Such commitments involve, to varying degrees, elements of
            credit and interest rate risk in excess of the amount recognized in the consolidated
            balance sheets. The Bank’s exposure to credit loss is represented by the contractual
            amount of these commitments. The Bank follows the same credit policy in making
            commitments, including collateral, as it does for on-balance-sheet instruments; no
            significant losses are anticipated as a result of these commitments.

            At December 31, 2007 and 2006, the following financial instruments were outstanding
            whose contract amounts represent credit risk:
                                                                     Contract Amount
                                                                   2007            2006

              Unfunded commitments under lines of credit       $ 21,061,032          $ 17,090,414
              Commitments to grant loans                         11,408,691             2,968,887
              Commitments under overdraft protection agreements 3,449,314               3,997,487
              Commercial and standby letters of credit              154,400                43,549


            Commitments to extend credit are agreements to lend to a customer as long as there is no
            violation of any condition established in the contract. Commitments generally have fixed
            expiration dates or other termination clauses and may require payment of a fee. The
            commitments may expire without being drawn upon. Therefore, the total commitment
            amounts do not necessarily represent future cash requirements. The amount of collateral
            obtained, if it is deemed necessary by the Bank, is based on management’s credit
            evaluation of the customer.




34                                The Dart Bank 83rd annual report 2007
                                 THE DART BANK

                                       notes to consolidated financial Statements
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



      Unfunded commitments under commercial lines-of-credit, revolving credit lines, and
      overdraft protection agreements are commitments for possible future extensions of credit
      to existing customers. These lines-of-credit are generally uncollateralized and usually
      contain a specified maturity date and may not be drawn upon to the total extent to which
      the Bank is committed.

      Commercial and standby letters-of-credit are conditional commitments issued by the
      Bank to guarantee the performance of a customer to a third party. Those letters-of-credit
      are primarily issued to support public and private borrowing arrangements. Essentially
      all letters-of-credit issued have expiration dates within one year. The credit risk involved
      in issuing letters-of-credit is essentially the same as that involved in extending loan
      facilities to customers. The Bank generally holds collateral supporting those
      commitments if deemed necessary and at December 31, 2007 and 2006 such collateral
      amounted to approximately $180,000 and $84,000, respectively. Guarantees that are not
      derivative contracts are recorded on the Bank’s consolidated balance sheet at their fair
      value at inception. The Bank considers standby letters of credit to be guarantees, and the
      Bank had no liability recorded related to such guarantees at December 31, 2007.


15.   ON-BALANCE SHEET DERIVATIVE INSTRUMENTS

      Interest Rate Risk Management – Derivative Instruments Not Designated As Hedging
      Instruments

      Certain derivative instruments do not, or are not designated to, meet Statement of
      Financial Accounting Standards No. 133 hedging requirements. These undesignated
      derivative instruments are recognized on the consolidated balance sheet at fair value,
      with changes in fair value recorded in other noninterest income.

      Derivative Loan Commitments

      Mortgage loan commitments are referred to as derivative loan commitments if the loan
      that will result from exercise of the commitment will be held for sale upon funding. The
      Bank enters into commitments to fund residential mortgage loans at specified times in
      the future, with the intention that these loans will subsequently be sold in the secondary
      market. A mortgage loan commitment binds the Bank to lend funds to a potential
      borrower at a specified interest rate and within a specified period of time, generally up to
      60 days after inception of the rate lock.

      Outstanding derivative loan commitments expose the Bank to the risk that the price of
      the loans arising from exercise of the loan commitment might decline from inception of
      the rate lock to funding of the loan due to increases in mortgage interest rates. If interest
      rates increase, the value of these loan commitments decreases. Conversely, if interest
      rates decrease, the value of these loan commitments increases. The notional amount of
      undesignated mortgage loan commitments was approximately $87,000 and $ -0- at
      December 31, 2007 and 2006, respectively.




                                       The Dart Difference                                            35
                                       THE DART BANK

     notes to consolidated financial Statements
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



           Forward Loan Sale Commitments

           To protect against the price risk inherent in derivative loan commitments, the Company
           utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to
           mitigate the risk of potential decreases in the values of loans that would result from the
           exercise of the derivative loan commitments.

           With a “mandatory delivery” contract, the Bank commits to deliver a certain principal
           amount of mortgage loans to an investor at a specified price on or before a specified date.
           If the Bank fails to deliver the amount of mortgages necessary to fulfill the commitment
           by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market
           prices, to the investor to compensate the investor for the shortfall.

           With a “best efforts” contract, the Bank commits to deliver an individual mortgage loan
           of a specified principal amount and quality to an investor if the loan to the underlying
           borrower closes. Generally, the price the investor will pay the seller for an individual
           loan is specified prior to the loan being funded (e.g., on the same day the lender commits
           to lend funds to a potential borrower).

           The Company expects that these forward loan sale commitments will experience changes
           in fair value opposite to the change in fair value of derivative loan commitments. The
           notional amount of undesignated forward loan sale commitments was $87,000 and $ -0-
           at December 31, 2007 and 2006, respectively.

           The fair values of the rate lock loan commitments related to the origination or acquisition
           of mortgage loans that will be held for sale and the forward loan sale commitments are
           deemed insignificant by management and, accordingly, are not recorded in these
           consolidated financial statements.

           Collateral Requirements

           To reduce credit risk related to the use of derivative instruments, the Bank might deem it
           necessary to obtain collateral. The amount and nature of the collateral obtained is based
           on the Bank’s credit evaluation of the customer. If the counterparty does not have the
           right and ability to redeem the collateral or the Bank is permitted to sell or re-pledge the
           collateral on short notice, the Bank records the collateral in its balance sheet at fair value
           with a corresponding obligation to return it.




36                                 The Dart Bank 83rd annual report 2007
                                 THE DART BANK

                                          notes to consolidated financial Statements
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



16.   REGULATORY REQUIREMENTS

      Capital Requirements

      The Bank is subject to various regulatory capital requirements, including restrictions on
      dividends, administered by the federal banking agencies. Failure to meet minimum
      capital requirements can initiate certain mandatory and possibly additional discretionary
      actions by regulators that, if undertaken, could have a direct material effect on the Bank’s
      financial statements. Under capital adequacy guidelines and the regulatory framework for
      prompt corrective action, the Bank must meet specific capital guidelines that involve
      quantitative measures of their assets, liabilities, capital, and certain off-balance-
      sheet items as defined in the regulations and calculated under regulatory accounting
      practices. The capital amounts and classification are also subject to qualitative judgments
      by the regulators about components, risk weightings, and other factors.

      Quantitative measurements established by regulation to ensure capital adequacy require
      the Bank to maintain minimum amounts and ratios (set forth in the following table) of
      total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined)
      and Tier 1 capital to average assets (as defined). Management believes, as of
      December 31, 2007 and 2006, that the Bank met all capital adequacy requirements to
      which they are subject.

      As of December 31, 2007, the most recent notification from the Federal Deposit
      Insurance Corporation categorized the Bank as well capitalized under the regulatory
      framework for prompt corrective action. To be categorized as well capitalized, an
      institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1
      leverage ratios as set forth in the following tables. There are no conditions or events
      since the notification that management believes have changed the Bank’s category. The
      Bank’s actual capital amounts and ratios as of December 31, 2007 and 2006 are also
      presented in the table.
                                                                                         Minimum
                                                                                        To Be Well
                                                                                        Capitalized
                                                                Minimum                Under Prompt
                                                                 Capital                 Corrective
                                         Actual               Requirement             Action Provisions
      December 31, 2007              Amount     Ratio     Amount         Ratio       Amount       Ratio
                                                    (Dollars in thousands)
      Total Capital to Risk
        Weighted Assets             $ 24,852     14.85%       $ 13,389      8.0 %    $ 16,737         10.0%
      Tier 1 Capital to Risk
        Weighted Assets               23,052     13.77           6,695      4.0        10,042         6.0
      Tier 1 Capital to
        Average Assets                 23,052      9.63          9,572      4.0        11,965         5.0




                                         The Dart Difference                                                  37
                                     THE DART BANK

     notes to consolidated financial Statements
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



                                                                                         Minimum
                                                                                        To Be Well
                                                                                        Capitalized
                                                                    Minimum            Under Prompt
                                                                     Capital             Corrective
                                             Actual               Requirement         Action Provisions
           December 31, 2006             Amount     Ratio     Amount         Ratio   Amount       Ratio
                                                        (Dollars in thousands)
           Total Capital to Risk
             Weighted Assets            $ 24,606    16.86%      $ 11,676     8.0%     $ 14,595        10.0%

           Tier 1 Capital to Risk
             Weighted Assets              22,906    15.69          5,838     4.0         8,757        6.0

           Tier 1 Capital to
             Average Assets               22,906    10.17          9,010     4.0        11,263        5.0


           Restrictions on Cash and Amounts Due from Banks

           The Bank is required by regulatory agencies to maintain legal cash reserves based on the
           level of certain customer deposits. Required reserve balances were $868,000 and
           $766,000 at December 31, 2007 and 2006, respectively.

           Regulatory Capital Transfer

           During 2007, the Bank effected a transfer of $4,000,000 from retained earnings to
           additional paid-in capital in order to increase its legal lending limit.


     17.   CONTINGENCIES

           Litigation

           The Bank is party to litigation arising during the normal course of business. In the
           opinion of management, based on consultation with legal counsel, the resolution of such
           litigation is not expected to have a material effect on the consolidated financial
           statements.

           Environmental Issues

           As a result of acquiring real estate in foreclosure proceedings, the Bank is subject to
           potential claims and possible legal proceedings involving environmental matters. No
           such claims have been asserted at December 31, 2007.




38                                  The Dart Bank 83rd annual report 2007
                                 THE DART BANK

                                       notes to consolidated financial Statements
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



18.   FAIR VALUES OF FINANCIAL INSTRUMENTS

      The fair value of a financial instrument is the current amount that would be exchanged
      between willing parties, other than in a forced liquidation. Fair value is best determined
      based upon quoted market prices. However, in many instances, there are no quoted
      market prices for the Bank’s various financial instruments. In cases where quoted market
      prices are not available, fair values are based on estimates using present value or other
      valuation techniques. Those techniques are significantly affected by the assumptions
      used, including the discount rate and estimates of future cash flows. Accordingly, the fair
      value estimates may not be realized in an immediate settlement of the instrument. The
      fair values of certain financial instruments and all nonfinancial instruments are excluded
      from disclosure. These include, among other elements, the estimated earning power of
      core deposit accounts, the trained work force, customer goodwill, and similar items.
      Accordingly, the aggregate fair value amounts presented may not necessarily represent
      the underlying fair value of the Bank.

      The following methods and assumptions were used by the Bank in estimating fair value
      disclosures for financial instruments:

         Cash and Cash Equivalents

         The carrying amounts of cash and short-term instruments approximate fair values.

         Interest-Bearing Deposits in Banks

         The carrying amounts of interest-bearing deposits maturing within ninety days
         approximate their fair values. Fair values of other interest-bearing deposits are
         estimated using discounted cash flow analysis based on current rates for similar types
         of deposits.

         Investment Securities

         Fair values for securities, excluding Federal Home Loan Bank Stock, are generally
         based on quoted market prices. The carrying value of Federal Home Loan Bank Stock
         approximates fair value.

         Loans Receivable

         For variable-rate loans that reprice frequently and with no significant change in credit
         risk, fair values are based on carrying values. Fair values for other loans (e.g., real
         estate mortgage, agricultural, commercial, and installment) are estimated using
         discounted cash flow analyses, using interest rates currently being offered for loans
         with similar terms to borrowers of similar credit quality. The resulting amounts are
         adjusted to estimate the effect of declines, if any, in the credit quality of borrowers
         since the loans were originated. Fair values for non-performing loans are estimated
         using discounted cash flow analyses or underlying collateral values, where applicable.




                                      The Dart Difference                                           39
                                       THE DART BANK

     notes to consolidated financial Statements
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



              Deposit Liabilities

              The fair values for demand deposits (e.g., interest and noninterest bearing checking,
              savings, and money market accounts) are, by definition, equal to the amount payable
              on demand at the reporting date (i.e., their carrying amounts). Approximately 44%
              and 43% of the Bank’s deposits at December 31, 2007 and 2006, respectively, have
              fair values equal to carrying values. The carrying amounts for variable rate, fixed-
              term money market accounts, and certificates of deposit and other variable time
              deposits approximate their fair values at the reporting date. Fair values for fixed rate
              certificates of deposit and other time deposits are estimated using a discounted cash
              flow calculation that applies interest rates currently being offered for deposits of
              similar remaining maturities to a schedule of aggregated expected monthly maturities
              on time deposits.

              Mortgage Servicing Rights

              Fair value is determined using prices for similar assets with similar characteristics,
              when available, or based upon discounted cash flow analysis.

              Long-Term Borrowings

              The fair values of the Bank’s long-term borrowings are estimated using discounted
              cash flow analyses based on the Bank’s current incremental borrowing rates for
              similar types of borrowing arrangements.

              Accrued Interest

              The carrying amounts of accrued interest approximate fair values.

              Off-Balance-Sheet Credit-Related Instruments

              Fair values for off-balance sheet, credit-related financial instruments are based on
              fees currently charged to enter into similar agreements, taking into account the
              remaining terms of the agreements and the counterparties credit standing. For fixed-
              rate loan commitments, fair value also considers the difference between current levels
              of interest rates and the committed rates.




40                                  The Dart Bank 83rd annual report 2007
                          THE DART BANK

                                 notes to consolidated financial Statements
      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



The carrying values and fair values of financial instruments are summarized as follows
(in thousands) as of December 31:

                                          2007                        2006
                                   Carrying    Fair            Carrying    Fair
                                    Value      Value            Value      Value
   Financial assets
      Cash and cash equivalents $ 5,152         $  5,152       $ 12,536      $ 12,536
      Interest-bearing deposits     4,255          4,259          4,760         4,831
      Investment securities        47,007         47,063         54,525        54,584
      Loans, net                  171,605        173,068        148,079       148,293
      Federal Home Loan Bank
        stock                         766             766            766          766
      Accrued interest receivable   1,215           1,215          1,134        1,134

   Financial liabilities
      Deposits                      204,182      204,597        202,722       202,559
      FHLB advances                  11,100       11,100          1,100         1,100
      Accrued interest payable          723          723            713           713



                                   ******




                              The Dart Difference                                        41
     continuing education 2007



              Joy Allaire                         Faith Easton                         Kim Harless
              Word Basics                    ira essentials Seminar                    Second Year
                                                                                 perry School of Banking
       Beginning Microsoft excel
                                                  Diana Ebare
                                           how to Deliver exceptional              Kendra Horstman
         Terrance Augustine
                                              customer Service                    ira essentials Seminar
         Michigan SBa lenders’
              conference
                                                 Mark Emmert                           Mark Howe
     MBa/rMa commercial lending
              School                          Senior lender forums                Michigan SBa lenders’
                                                                                       conference
      Business lending conference            economic update 2007
                                                                                lending to Self-employed
                                          legislators and lenders Day
                                                                                  individuals and Small
              Trina Austin                       at the capitol
                                                                                    Business owners
           introduction to                   handling right of Setoff
                                                                                understanding and using
          Mortgage lending
                                            understanding and using              personal and Business
                                             personal and Business                    Tax returns
              Ann Avona                           Tax returns
                                                                                retail lending conference
          principles of Banking              repossession and Sale
                                                                              McDc/SBa 504 loan program
     how to Supervise Bad attitudes              of collateral
                                                                                      Training
       and negative Behaviors              Managing the commercial
                                                                                  Business Development
                                             real estate portfolio
                                                                                 for community Bankers
             Debbie Borst
        profitStar Beyond Basics                 Roy Halfmann
                                                                                      Tammy Jenks
                                          Managing Multiple priorities,
                                                                                  economics for Bankers
           Pennie Brownlee                 projects, and Deadlines
                                                                                   consumer lending
       Beginning Microsoft excel            cif 20/20 health Savings
                                            accounts ira overview
          Jennifer Campbell                                                          Carrie Johnson
                                             Synergy Batch ocr
                                        administration and user Training           principles of Banking
         Synergy Document
      Management administration               Bank operations and              economics for Bankers (aiB)
                                            Technology conference
         Michelle Carpenter                                                         Diane Johnston
                                               impromptu Training
     achieving personal excellence                                              Beginning Microsoft excel
                                                Cindy Hamilton
          Kellie Christopher                                                      Natasha Kirchmeier
                                         new Suspicious activity report
          General accounting                                                  how to Supervise Bad attitudes
                                             internal Bank auditors             and negative Behaviors
       Beginning Microsoft excel                  conference
                                           Your Bank’s risk assessment                Dave Kosbar
            Miranda Cloud                    responsibilities: BSa, iT,
                                               authentication, ciS                  fraud prevention
         ira essentials Seminar
                                                                                    and examination
                                           Bank compliance institute
             Melanie Dart
        Developing a Business
      Development Strategy and
          plan for prospects


42                                    The Dart Bank 83rd annual report 2007
                                                                continuing education 2007



        Pete Kubacki                     Becky Moore                        Karla Spoor
  legislators and lenders Day      Beginning Microsoft excel                 hr forums
         at the capitol
                                                                       employment law 2007
     Marketing and Sales                  John Morris
                                                                            coBra 2007
   Management Boot camp            understanding and using
                                    personal and Business             Warner norcross & Judd
                                         Tax returns                 human resources Seminar
      Stephanie LaPratt
    handling right of Setoff                                         What’s new with Blue cross
                                         Katie Murray              how to Supervise Bad attitudes
      Devin Lavengood            Synergy General administration      and negative Behaviors
 evaluating the Self-employed               netTeller                   Mi ShrM conference
           Borrower
                                 netTeller—cash Management              Dol retirement plan
     The art of evaluating                                                 compliance
        the appraisal                      Teri Myers
                                     ira essentials Seminar              Ashtyn Thompson
       Nanette Listing                                             how to Supervise Bad attitudes
     The latest Buzz on the                                          and negative Behaviors
                                      Heather Newman
         payments Biz
                                      principles of Banking
  how to Deliver exceptional                                                Mary Tressel
     customer Service                  consumer lending
                                                                       handling right of Setoff
       excel advanced                 General accounting
                                                                     reSpa, review and update

                                          Tara Owens                   repossession and Sale
        Sally Mangles                                                      of collateral
 how to Be a Dynamic Trainer     achieving personal excellence
                                                                          consumer fraud
          Word Basics                    ira update:
                                     Beyond the essentials
     Management Skills for                                                 Jacob Walters
     first-Time Supervisors                                            cash flow and Business
                                           Sally Rae
                                                                        financial Statements
                                     Strategies of Branching
     Heather McNamara                                                 understanding and using
      impromptu Training               Marketing forums                personal and Business
                                   how to run a high-results                Tax returns
         Debra Miles                    Sales Meeting                appraisal review Seminar
         cfo forums                first Year Graduate School
                                            of Banking                     Amy Wheeler
  Your Bank’s risk assessment
    responsibilities: BSa, iT,        information Security         Strengthening Your people Skills
      authentication, ciS              risk Management
                                                                   how to Supervise Bad attitudes
     overview of Michigan        achieving personal excellence       and negative Behaviors
         Business Tax
The current credit environment            Ulices Rosa
 Michigan Business Tax Seminar       ira essentials Seminar

   cpa/financial institutions
         conference
funds Management conference



                                      The Dart Difference                                             43
     Dart Bankers



                                                                                                                                                                                                                        Years of
                                                                                                                                                                                                                        Service
     norene akom, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  39
     Joy allaire, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        10
     Terrance augustine, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     2
     Trina austin, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      7
     ann avona, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             2
     Jerry Baker, Courier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2
     Britney Barry, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             1
     Mary Jane Beaune, Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            33
     carol Bird, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       32
     Mary Bitonti, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            1
     Debra Borst, Accounting Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          23
     colleen Briggs, Lending. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           28
     pennie Brownlee, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       5
     elfriede cairns, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          6
     Jennifer campbell, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           2
     Michelle carpenter, Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               15
     Miranda cloud, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 1
     Scott cornell, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               2
     chelsea craft, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     Doug crips, Courier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     andrea Daines, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     Melanie Dart, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            2
     rollin Dart, Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            45
     faith easton, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          3
     Diana ebare, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              22
     Mark emmert, Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       3
     ed evert, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      5
     loretta farnsworth, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  43
     craig Goble, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         20
     roy halfmann, Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   2
     cindy hamilton, Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2
     kimberly harless, Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          2
     kendra horstman, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     1
     larry howe, Courier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     9
     Mark howe, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       22
     connie ireland, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   14
     Janice Jacobs, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   1
     Tammy Jenks, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             3
     carrie Johnson, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    2
     natasha kirchmeier, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            5
     Michele klemens, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     Jennifer koenig, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   1
     David kosbar, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           3


44                                                                          The Dart Bank 83rd annual report 2007
                                                                                                                                                                                                Dart Bankers



                                                                                                                                                                                                                       Years of
                                                                                                                                                                                                                       Service
peter kubacki, administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
amy lane, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            3
Stephanie lapratt, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             7
Devin lavengood, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        2
nanette listing, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       2
Sally Mangles, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     9
Vicie Mcclung, Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       10
heather Mcnamara, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    7
angela Mcphail, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      3
Debra Miles, Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      20
rebecca Moore, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             4
John Morris, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2
Teri Myers, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
heather newman, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                            1
Shannon orlowski, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              1
Tara owens, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              9
Sheila pawlowski, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          1
Jill raab, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    9
Sally rae, Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                30
Mary ribby, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                9
Bette-Jo rogers, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         7
ulices rosa, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
lorinda Sallek, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               3
lori Simon, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          1
Diana Soule, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  11
karla Spoor, Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    16
Sarina Strang, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sharon Thompson, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       28
Barbara Titus, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  21
Debra Town, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  7
rebecca Trent, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mary Tressel, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               10
Devon upton, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    28
katie Vanliew, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     7
kevin Waldie, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jacob Walters, Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                1
Gretchen Warner, Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Judi Wentland, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       5
amy Wheeler, Customer Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 14
David Whitfield, Administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            1
Mahvish Yunus, Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       1
                       Dart Bank has a written Affirmative Action Compliance Plan on equal employment opportunity.
            It is designed to provide guidance to management with respect to the bank’s commitment to full implementation
                                              of its Equal Opportunity/Affirmative Action policy.



                                                                                             The Dart Difference                                                                                                                        45
     Donations 2007 (partial list)



             alzheimer’s association               lansing community college foundation

            american cancer Society                          loaves & fishes Ministry

               american red cross                       March of Dimes—Walkamerica

     angel house (child and family Services)             Mason area historical Society

              Boy Scouts of america                     Mason educational foundation

                camp highfields                                  Meals on Wheels

      capital area community Services, inc.                     Michigan council
                                                             on economic education
          capital area humane Society
                                                          Michigan harvest Gathering
                      care
                                                        Muscular Dystrophy association
              church World Service
                                                        oak park YMca—invest in Youth
          city rescue Mission of lansing
                                                           old newsboys association
             Doctors Without Borders
                                                            prison fellowship Ministries
            eaton community hospice
                                                                  Salvation army
             father John’s fund, inc.
                                                         South Side community kitchen
       Grand ledge emergency assistance
                                                                The carter center
        Greater lansing housing coalition
                                                                The hundred club
       Greater lansing Symphony orchestra
                                                                       united Way
              habitat for humanity
                                                                Wkar public radio
                  haven house
                                                                       World Vision
           holt community food Bank
                                                                       Young life
            holt education foundation
                                                               Youth haven ranch
               Junior achievement

           lansing area Safety council

46                             The Dart Bank 83rd annual report 2007
                                                                 Board of Directors




RICHARD L. CHENEY              MELANIE S. DART               PETER A. KUBACKI
    Chairman                    Vice Chairman                President and CEO




               JOHN O. GRETTENBERGER             MARK S. HENNE




 BLAKE D. MULDER                JOHN L. NOUD                DARWIN L. SHAVER




                              The Dart Difference                                     47
     in Memory of Bill Dunlap




            a cause of much sadness during the year 2007 was the passing of our
            dear friend, Billy Dunlap. following retirement from his lifetime career,
            he came to us to serve as courier and he continued in this capacity
            for 20 years. Billy, with his kind and sensitive nature, quickly became
            a friend to all. it wasn’t just a job for Billy. he looked forward, from
            week to week, to the time he would be spending with his friends.
            Billy liked to say that he was getting in his 40 hours during the two
            days he worked. he was never hatless unless attending special
            occasions. Billy’s warmth and kindness will remain in our hearts for
            as long as we live.




48                                The Dart Bank 83rd annual report 2007
                           Our Mission
         Our primary purposes are to meet the financial needs

                     of our banking communities,

      protect and increase the value of stockholders’ investments,

     and serve the community in financial and non-financial ways.

Our bank acknowledges the interdependence of all mankind in the world

         and reaches out beyond local areas in times of need.

 We are committed to creating a workplace that nurtures the well-being

                    and growth of our employees.

								
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